China fertile ground for growing food companies, state says

An increasing appetite in China for the ready-to-eat, quick-serve, healthy food options that are a staple of many western diets presents new opportunities for small and midsize companies, according to the Michigan Department of Agriculture and Rural Development.

For small and midsize food companies, China is fertile ground to grow.

A growing appetite among Chinese millennials for the ready-to-eat, healthy and quick-serve food options that are a staple of western diets is presenting opportunities for small and midsize food companies still getting established in the U.S., said Jamie Zmitko-Somers, international marketing program manager for the Michigan Department of Agriculture and Rural Development.

They include companies such as Safie Specialty Foods, a Chesterfield Township-based maker of pickled beets, asparagus and bread and butter pickles; Detroit-based Banza LLC, which makes a gluten-free pasta from garbanzo bean flour; and Oak Park-based Live Smart Bar LLC, which makes a natural energy bar.

The companies aren't names you'd necessarily know, Zmitko-Somers said, and they are often able to get some domestic distribution. But exporting to China provides another market and an opportunity for them to continue to grow their operation in Michigan.

"A lot of what's going into China is still commodity-based or bulk-dairy products and that type of thing," she said.

"But there's definitely a lot of ... opportunity for growth of value-added foods."

That could be anything from wine and craft beer, which is garnering a lot of interest in the export arena, to pasta, sauces, energy bars, peanut butter, as well as other agricultural products such as wood veneer, Zmitko-Somers said.

To capitalize on the trend, the Department of Agriculture's director, Jamie Clover Adams, is leading a trade mission to China set for Nov. 9-14 to connect Michigan food and agriculture companies with Chinese importers and distributors. Stops in Shanghai and Shenzhen, home to many food buyers, importers and distributors, are planned, along with one-on-one meetings, retail tours and briefings with U.S. Department of Agriculture officials.

Open to all Michigan agricultural companies, the trade mission will give Michigan companies already exporting to China the opportunity to secure new customers and others the opportunity to begin exporting their products to the Asian country, Zmitko-Somers said, noting the state provides small and midsize food companies with technical and other types of assistance as the pursue export of their product to countries including Canada, Mexico, Central America, Europe and China.

The Department of Agriculture is helping to subsidize the costs of the trip and connecting interested food companies with Food Export Association of the Midwest USA, a nonprofit funded by the USDA, that also provides services and funding assistance for such trips.

The Department of Agriculture is taking applications through Aug. 12 from companies that want to join the trade mission.

"As the third largest export market for Michigan food and agriculture products, China's growing middle class provides a great opportunity for Michigan companies," Clover Adams said in a release.

"Traveling to China provides companies a firsthand look at market potential and the ability to meet face to face with key buyers to cultivate key relationships critical for international business development."

Companies will be able to "build off the strong rapport Gov. Snyder has built in China – visiting six times in six years," she said.

In 2015, U.S. food and agriculture exports totaled more than $20.2 billion, according to the USDA. A record $71 million of that came from Michigan, Zmitko-Somers said, noting a significant increase in the export of food and agricultural products since 2009.